TIKZN Key Sectors - Energy and Water

Renewable Energy

The call to shift to renewable energy is part of a bigger plan to transition to a low carbon economy. It also aligns with undertakings given by South Africa’s Government as a signatory to the Paris Agreement that would allow for a reduction of greenhouse gas emissions. Nationally, there is a commitment of systematic reduction towards 17,800 MW renewable energy generated by 2030, and a further reduction to 13,225 MW renewable energy generated by 2025. Importantly, it is reported that for each kilowatt hour of renewable energy that displaces fossil fuels in the national grid, 1.2 litres of water will be saved, allowing the Province to achieve both greenhouse gas emission and water demand reduction targets.

Globally, the case for the Green, renewable or Clean Economy has been made abundantly clear. Renewable energy is the only electricity generation technology whose price has decreased dramatically, with solar PV module prices falling by 80% during the past five years, while wind turbines have become 30% less expensive. South Africa’s wind resources are regarded as amongst the top five in the world and could sustain 25% of our grid’s capacity. Furthermore, it is estimated that by 2020 the price of wind and solar PV will be at least R0-50/kwh, unlike Eskom’s Medupi power station, which - once completed - will charge close to R1-10/kwh.

KwaZulu-Natal is an energy-hungry province and consumes in excess of 6 700 MW of electricity and to maintain predicted economic growth rates of between 6% and 7%, the province requires between 400MW and 470MW more electricity every year. As part of the transition towards a low carbon economy, there is a need to consider alternative energy options at the district, provincial and industrial level. The province’s renewable energy sector incorporates a host of sustainable solutions and includes the installation and supply of solar water heaters and heat pumps, solar energy, biomass, biogas, bio-fuels, wind, hydro, waste to energy, industrial symbiosis and also the circular economy and energy efficiency measures.

Water

Water is now regarded as the highest global risk in terms of devastation, ahead of nuclear war or a global health pandemic. South Africa, the 30th driest country in the world, not only experiences extreme climate and rainfall fluctuations, but has an average annual rainfall which is half the global average. This rainfall is unevenly distributed across a country which currently has access to surface water (77% of total use), groundwater (9% of total use) and re-cycled water (14% of total use).

Water is not only a crucial component for food production, but is also integral to the country’s industrial, mining and power generation sectors, which uses 10% of its freshwater, while contributing close to 40% to the country’s total GDP. Agriculture, on the other hand, accounts for 15% of GDP and uses 60% of the available water supply. The industrial sector, which contributes 29% towards GDP, uses 11% of the country’s water. It is predicted that during the next five years, there will be significant growth in the water infrastructure, waste-water treatment, desalination and water recycling sectors. This will become particularly prevalent as the debilitating effects of climate change become more pronounced resulting in widespread changes to the global water industry. Consequently, the business community, municipalities and utilities will be required to invest significantly in water technologies and infrastructure. Similarly, smart water meters will replace existing equipment while huge investment will be required in water infrastructure, inclusive of pumps, pipes, valves, irrigation equipment, filtration and membrane technology. While a country-wide increase in rainwater and grey water harvesting is predicted, another area of possible investment will be in waste-water treatment plants which are in every municipality across the province and which may be retrofitted to produce energy. In effect, following global best practice, they will become energy factories.

South Africa’s rainfall has always been variable and unpredictable, thus posing grave risks to rain fed agriculture and for reliable supplies to reach urban and industrial water users, there needs to be sufficient investment in storage infrastructure. However, this infrastructure must be cognisant of the ever-changing climate. The country needs significant policy shifts to address both the seriousness of water conservation, as well as the increasing demand for water.